Tanager Energy Announces Second Quarter 2018 Results

CALGARY, Alberta , Aug. 29, 2018 (GLOBE NEWSWIRE) — Tanager Energy Inc. (“Tanager” or the “Corporation”) (TSX-V: TAN, OTCQB: TANEF) announces its financial and operating results for the three and six months ended June 30, 2018. This press release contains forward looking statements. Please refer to our cautionary language on forward-looking statements and other matters set forth at the end of this press release and the end of the Management’s Discussion and Analysis (the “MD&A”) for the three and six months ended June 30, 2018 and 2017. Tanager’s unaudited interim condensed consolidated financial statements and notes, and the MD&A for the three and six months ended June 30, 2018 and 2017 are filed on SEDAR at www.sedar.com.

Second Quarter 2018 Highlights

Three months ended June 30,

Six months ended June 30,

2018

2017

2018

2017

Selected Financial Results (Unaudited)

(CDN$ except share and per share amounts)

Revenue

249,787

44,089

561,882

80,970

Royalties

75,358

10,281

143,358

14,475

Production taxes

16,071

–

40,081

–

Operating expenses

78,956

34,297

151,358

74,231

General and administrative expenses

342,450

389,525

651,907

689,040

Finance expenses

87,087

358,020

491,705

769,582

Gain on unrealized embedded derivatives

–

210,841

818,338

369,107

Foreign exchange loss (gain)

3,757

(150,186

)

179,012

(192,376

)

Net loss

(514,146

)

(481,867

)

(626,178

)

(1,031,329

)

Per share – basic and fully diluted

$

(0.00

)

$

(0.01

)

$

(0.00

)

$

(0.01

)

Comprehensive loss

(380,666

)

(761,377

)

(307,436

)

(1,404,665

)

Cash flow from operating activities

(298,122

)

(403,667

)

(476,249

)

(1,309,812

)

Per share – basic and fully diluted

$

(0.00

)

$

(0.00

)

$

(0.00

)

$

(0.01

)

Total capital expenditures (excluding acquisitions)

48,101

1,232,866

188,818

2,733,041

Total assets

16,522,573

16,393,940

16,522,573

16,393,940

Total liabilities

10,124,304

14,393,314

10,124,304

14,393,314

Shareholders’ equity (deficiency)

6,398,269

1,970,626

6,398,269

1,970,626

Common shares

Common shares outstanding

235,286,816

107,716,388

235,286,816

107,716,388

Weighted average number of

common shares outstanding

235,286,816

107,716,388

183,417,361

107,716,388

TSX Venture Share Trading Statistics

(CDN$/share except volumes based on intra-day trading)

High

0.135

0.200

0.135

0.200

Low

0.045

0.135

0.045

0.085

Close

0.045

0.160

0.045

0.160

Average daily volume

29,746

72,166

26,312

110,625

Financial highlights

Three months ended June 30

Operations by operating segment

2018

2017

Canada

U.S.

Total

Canada

U.S.

Total

Crude oil

38,080

–

38,080

36,530

–

36,530

Natural gas liquids

2,870

–

2,870

3,657

–

3,657

Natural gas

994

207,507

208,501

3,839

–

3,839

Petroleum and natural gas sales

41,944

207,507

249,451

44,026

–

44,026

Other income

336

–

336

63

–

63

Total revenue

42,280

207,507

249,787

44,089

–

44,089

Royalties

8,065

67,293

75,358

10,821

–

10,821

Production taxes

–

16,071

16,071

–

–

–

Operating expenses

35,647

43,309

78,956

34,297

–

34,297

Sales volumes

Light oil and natural gas liquids (bbls)

543

–

543

720

–

720

Natural gas (mcf)

694

60,153

60,847

1,242

–

1,242

Total sales volumes (boe)

659

10,025

10,684

927

–

927

Six months ended June 30

Operations by operating segment

2018

2017

Canada

U.S.

Total

Canada

U.S.

Total

Crude oil

78,005

–

78,005

64,600

–

64,600

Natural gas liquids

6,419

–

6,419

6,802

–

6,802

Natural gas

3,122

473,630

476,752

6,722

–

6,722

Petroleum and natural gas sales

87,546

473,630

561,176

78,124

–

78,124

Other income

706

–

706

2,846

–

2,846

Total revenue

88,252

473,630

561,882

80,970

–

80,970

Royalties

14,778

128,580

143,308

14,475

–

14,475

Production taxes

–

40,081

40,081

–

–

–

Operating expenses

78,195

73,164

151,359

74,231

–

74,231

Sales volumes

Light oil and natural gas liquids (bbls)

1,222

–

1,222

1,242

–

1,242

Natural gas (mcf)

1,757

130,922

132,679

2,165

–

2,165

Total sales volumes (boe)

1,515

21,820

23,335

1,603

–

1,603

Upcoming Changes in Issuer’s GAAP / Foreign Private Issuer Status

Under the US Securities Exchange Act of 1934, a foreign private issuer (“FPI”) is an entity incorporated or organized under the laws of a jurisdiction outside of the US, unless:

more than 50% of its outstanding voting securities are directly or indirectly owned of record by US residents; and

any of the following applies: (i) the majority of its executive officers or directors are US citizens or residents; (ii) more than 50% of its assets are located in the United States; or (iii) its business is administered principally in the United States.

A company’s ongoing FPI status is tested annually at the end of the most recently completed second fiscal quarter. If an issuer fails to qualify as a FPI at the end of its second fiscal quarter, it remains eligible to use the forms and rules applicable to FPIs until the end of that financial year.

As of June 30, 2018, Tanager has determined that it no longer qualifies as a FPI. Therefore, Tanager must transition to U.S. domestic company reporting status and become subject to SEC reporting requirements applicable to a U.S. domestic company, beginning in 2019. These reporting requirements will require that the Company’s financial statements and selected financial data be recast into US GAAP and US dollar reporting currency for all periods presented, which will include the 2018 annual filings. The extent of the impact of adoption of these standards has not yet been determined. In addition, Tanager will be required to file annual, quarterly and current report filing with the SEC, comply with US insider filing requirements under the Exchange Act, and follow Regulation FD for “fair disclosure” of materially non-public information through public disclosure that is broadly available to all members of the public at the same time.

Advisories & Contact

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of theTSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Tanager Energy Inc. is an oil and natural gas and mineral exploration company headquartered in Calgary, Alberta, with executive offices in Houston, Texas. The Corporation’s common shares are listed on the TSX Venture Exchange under the trading symbol “TAN” and on the OTCQB as “TANEF”.

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this news release contains forward-looking information regarding: the business of Tanager. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Tanager’s current beliefs and is based on information currently available to Tanager and on assumptions Tanager believes are reasonable. These assumptions include, but are not limited to: market acceptance and approvals, and future costs and expenses being based on historical costs and expenses.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Tanager to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; geological, technical, drilling and processing problems; general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting Tanager; the timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Tanager’s disclosure documents on the SEDAR website at www.sedar.com. Although Tanager has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Tanager as of the date of this news release and, accordingly, is subject to change after such date. However, Tanager expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.